A Study On Localization Option Of Automotive Multi-national Enterprises In Chinese Market

The multi-national enterprises (MNEs) have played more and more important role in the process of economy globalization. The localization option of MNEs is a major determinant to the space formation of the world industry. Therefore, many researchers in each country have been engaging in the theory study of MNEs distributions, in order to absorb more foreign investment to promote the development of their domestic economy. Many theories, such as original industrial location, international manufacture tradeoff, industry collection and competition superiority, are all regard the location superiority as an important factor of the localization option of MNEs.The automotive industry, as a symbol of economic level in a country, is sensitive to the regional development condition, such as correlation between upper and lower companies, cooperation between assembling and part supplying companies, etc. Under the driving of the economy globalization, the automotive industry has become a global one and competed in the world scope. Most countries in the world and their interior different areas are trying hard to develop their automotive industry for obtaining the MNEs' FDI. In China, however, the research on investment direction of the automotive industrial MNEs is not reasoned and systematic. This dissertation focuses on the localization problem of automotive industrial MNEs in China. Based on the review and analysis of the related traditional theories and their application examples in China, this paper considers the particularity of automotive industry and the MNEs' FDI features, analyzes the crucial factors which affects the automotive MNEs' localization and FID, and furthermore puts forward some countermeasures on how to directly fetch the MNEs' FID into Chinese automotive industry.As known that China has joined WTO and is reinforcing its opening to foreign countries. During this time, it is very important in theory and practice to study the effect factors of the option of automotive MNEs' localization and make reasonable countermeasures to attract automotive MNEs' FDI in China.